Question Description
Watch the video/read material on Blackboard and book around pricing and then answer the following questions (please TYPE answers).
What will the profit be if they sell 2,000 units at $349 retail price? And what will be the profit if the Parker merger reduces costs as projected and they again sell 2,000 units? How important is it that the company’s retailers and dealers are on board with its pricing strategy?
Units Sold MSRP Revenue
2,000 $349 $ 698,000 (2,000 x $349)
TC before Merger TC After Merger
Rent & Taxes $ 14,000 $ 8,400 (due to 40% decrease)
Deprec. Of Equip
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